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Stocks Extend Gains boosted by Strong Global Outlook

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 2, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    Stock indices extended their gains on Monday boosted by a strong outlook for the global economy. In the meantime, the outlook for the U.S. recovery weakened as July PMI fell and Fed Chairman Bernanke expressed his concerns for labor and housing.

    News of an improving global economy sent global equity markets sharply higher in a rally that never looked back. Stronger global PMI reports drove up demand for risky assets as traders begin to price in a weakening U.S. economy.

    Traders seeking higher return on their investments sold the lower yielding Dollar and Treasury instruments to take advantage of the strong rally in equity markets today. The rally began overnight in Asia and quickly spread to Europe. U.S. traders, who have had ample opportunities to buy equities on dips during the past week, chased the market higher from the opening.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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